Alternatives for a Volatile Market: Pro

With the likelihood of a rocky stock market ahead, investors need to look at other ways to position themselves, BlackRock's Michael Fredericks said Friday.

"Well, we do think that vol will be with us, particularly in the fixed-income markets," he said, adding that that segment had been "lulled."

"I think it's the magnitude and the pace of this adjustment to the Fed announcement that's been jarring, but really I think the time to prepare for this was over the last four to six weeks, not now in the middle of the storm," he added.

On CNBC's "Fast Money," Fredericks said that his fund held about 25 percent in cash and that he had bought puts three to four weeks ago, "when they were pretty reasonable, and we stripped out a lot of our duration."

Fredericks said that the bond sell-off felt "a little bit overdone right now."

"I think guessing the direction of the 10-year Treasuries has become the new national pastime, and our view is that it probably does drift higher but with a lot of volatility around it," he added.

Fredericks said that outflows have been "pretty punishing" in higher-income-producing asset classes, as well as Treasuries.

(Read More: Mike Santoli's 4 Cheap 'Buy' Stocks)

The need for income will likely push investors into high-quality stocks, as well as riskier assets, he said.

While defensive stocks had gotten "frothy" leading up to the May 22 Fed meeting in which talk of tapering asset purchases arose, Fredericks said that they could once again see support.

"They pulled back quite a bit, but I also think you're going to see investors looking for other alternatives than just moving from relatively safe fixed income into higher volatility equities," he said.

(Read More: 'Too Soon for Stocks Right Now': Weiss)

"There's a lot of other options if you're looking for income, and then on the equity side, I think we think that some of the cyclical stocks you have been talking about are really undervalued relative to the quality.

"And one of the ways we've been trying to embed them in our portfolio is with covered calls because you can get a lot of additional income if you're willing to sell some of your upside away in these cyclical names," Fredericks added. "So, I think there are a lot of different ways you can play it."

Trader disclosure: On June 21, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long BAC; Steve Weiss is long C; Stephanie Link is long AAPL; Stephanie Link is long JPM ; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long WY; Stephanie Link is long KEY; Mike Murphy is long BAC; Mike Murphy is long T; Mike Murphy is long LEN; Mike Murphy is long FB; Jon Najarian is long ARNA; Jon Najarian is long XLU; Jon Najarian is long XLP; Jon Najarian is long GLD; Jon Najarian is long EXC; Jon Najarian is long ARMH; Jon Najarian is long VC; Jon Najarian is long FRX.